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 EDEN, N.C., Feb. 3 /PRNewswire/ -- Fieldcrest Cannon, Inc. (NYSE: FLD), today announced that net income in the fourth quarter of 1992 was $7.8 million, or 65 cents per share, compared to $2.4 million, or 23 cents per share, in the fourth quarter of 1991. Net income for the fourth quarter of 1992 was reduced $1.2 million, or 10 cents per share, by a pre-tax charge of $3.5 million to provide for closing a towel manufacturing facility, the effect of which was reduced by a pre- tax credit of $1.5 million as a result of an adjustment of reserves established in 1990 for discontinuing automatic blanket operations.
 Sales in the fourth quarter of 1992 were $328.8 million compared to $343.0 million in the fourth quarter of last year, a decrease of 4 percent. Bed and bath product sales decreased 4 percent and carpet and rug sales decreased 6 percent compared to the fourth quarter of 1991.
 Bed and bath division operating income for the fourth quarter of 1992 increased significantly from 1991 levels. Operating income increased primarily because of lower cotton costs and higher mill activity levels. Increases in wages and other costs compared to 1991 levels were partially offset by savings realized from the company's cost reduction efforts.
 Carpet and rug division operating income for the fourth quarter of 1992 declined from 1991 levels, but continued to contribute significantly to the company's results. Emphasis on the medium-to-high end segment of the residential and commercial markets and continued cost reduction efforts have allowed the division to make an important contribution to operating income, despite the lower sales volumes.
 Income for 1992, before an extraordinary charge, was $20.4 million, or $1.81 per share, compared to net income of $3.2 million, or 30 cents per share for 1991. Net income for 1992 was reduced by an extraordinary charge from early retirement of debt of $5.2 million, or 46 cents per share. Net income after the extraordinary charge for 1992 was $15.2 million, or $1.35 per share. Sales for the year were $1,217.3 million, compared to $1,212.4 million in 1991.
 The company will adopt FAS 106, "Employers' Accounting for Postretirement Benefits other than Pensions," and FAS 109, "Accounting for Income Taxes," in the first quarter of 1993. The adoption of the two accounting standards will reduce shareowners' equity and first quarter net income by approximately $22 million and $45 million, respectively, but will have no cash impact. The one-time charges will be recorded as accounting changes. Prospectively, the company expects the 1993 postretirement benefits expense and effective income tax rate to decline from 1992 levels by amounts that will favorably affect net income by approximately $2 million in 1993.
 Total debt of $377.8 million at Dec. 31, 1992 is $73.3 million lower than Dec. 31, 1991 levels and currently accounts for 57 percent of total capitalization. Inventory levels were up $9.8 million from 1991 levels, but remain well controlled. The company continues its efforts to improve long-term profitability and believes it is positioned to benefit further with an improved economy.
 On Jan. 28, 1993, Amoskeag Company and Dumaines Trustees disclosed that Dumaines has undertaken to review its present investment in Amoskeag and in Amoskeag's investments with a view to a possible reduction or liquidation thereof. Amoskeag owns approximately 30 percent of the equity of Fieldcrest Cannon and controls approximately 81 percent of the voting power of Fieldcrest Cannon stock. The Dumaines and affiliated trusts own approximately 76 percent of the voting power of the equity of Amoskeag. It is too early in this review
process to predict the outcome. Fieldcrest Cannon has significantly improved its financial performance in the past two years and has in place strategies designed to sustain this growth. Accordingly, management anticipates there would be no significant changes in Fieldcrest Cannon's operations as a result of any sale by Amoskeag and Dumaines of their investment.
 Fieldcrest Cannon, Inc. manufactures and markets bed and bath products under the Fieldcrest, St. Marys, Cannon Royal Family, Cannon Monticello, and private brand labels. Carpet and rug division products include high quality woven and tufted carpets and rugs marketed under the Karastan and Bigelow brands.
 Fieldcrest Cannon, Inc. common stock is traded on the New York Stock Exchange under the symbol "FLD".
 Condensed Consolidated Statements
 (Dollars in thousands, except per share data)
 Consolidated Statement of Income
 Periods ended Three Months Twelve Months
 Dec. 31 1992 1991 1992 1991
 Net sales:
 Bed and bath products $270,862 $281,579 $ 981,773 $ 960,663
 Carpet and rugs 57,985 61,403 235,506 251,773
 Total net sales 328,847 342,982 1,217,279 1,212,436
 Cost of sales 268,929 293,279 998,703 1,028,122
 Selling, general
 and administrative 37,128 33,556 141,507 132,009
 Total operating costs
 and expenses 306,057 326,835 1,140,210 1,160,131
 Operating income 22,790 16,147 77,069 52,305
 Interest expense 9,432 11,748 41,333 45,477
 Other deductions (income) (140) (68) 129 (977)
 Income before income
 taxes 13,498 4,467 35,607 7,805
 Income tax provision 5,671 2,037 15,178 4,640
 Income before
 extraordinary charge 7,827 2,430 20,429 3,165
 Extraordinary charge -
 early retirement of debt -- -- (5,179) --
 Net income $ 7,827 $ 2,430 $ 15,250 $ 3,165
 Average primary shares
 outstanding 11,986 10,426 11,256 10,423
 Income before
 extraordinary charge $.65 $.23 $1.81 $.30
 Extraordinary charge -
 early retirement of debt -- -- (.46) --
 Primary earnings per share .65 .23 $1.35 .30
 Fully diluted earnings
 per share $.61 $.23 (A) $.30
 (A) -- Not presented, as effects are anti-dilutive.
 Consolidated Statement of Financial Position
 12/31/92 12/31/91
 Current assets:
 Cash $ 4,665 $ 9,338
 Accounts receivable 181,056 193,725
 Inventories 244,321 234,559
 Deferred tax assets 23,202 21,503
 Other prepaid expenses and
 current assets 7,303 9,274
 Total current assets 460,547 468,399
 Plant and equipment, net 372,432 388,186
 Deferred charges and other assets 31,012 26,077
 Total assets $863,991 $882,662
 Current liabilities:
 Short-term borrowings $ 14,056 $183,009
 Accounts and drafts payable 69,399 63,524
 Federal and state income taxes payable 3,627 550
 Accrued liabilities 66,592 68,542
 Current portion of long-term debt 10,293 14,547
 Total current liabilities 163,967 330,172
 Long-term debt 353,419 253,493
 Deferred income taxes 41,484 36,658
 Other non-current liabilities 20,643 19,166
 Shareowners' equity 284,478 243,173
 Total liabilities and shareowners'
 equity $863,991 $882,662
 Consolidated Statement of Cash Flows
 Twelve months ended Dec. 31 1992 1991
 Cash flows from operating activities:
 Net income $ 15,250 $ 3,165
 Extraordinary charge from early
 retirement of debt 5,179 --
 Depreciation and amortization 38,907 37,660
 Deferred income taxes 4,826 3,156
 Working capital and other 8,260 (43,189)
 Net cash provided by (used in)
 operating activities 72,422 792
 Cash flows from investing activities:
 Additions to plant and equipment (25,082) (35,536)
 Proceeds from disposal of plant
 and equipment 3,994 5,766
 Total cash (used in) investing
 activities (21,088) (29,770)
 Net cash provided by (used in)
 financing activities (56,007) 25,184
 Increase (decrease) in cash $ (4,673) $ (3,794)
 -0- 2/3/93
 /CONTACT: K. W. Fraser Jr., chief financial officer, 919-627-3253, or T. R. Staab, vice president-finance, 919-627-3117, both of Fieldcrest Cannon/

CO: Fieldcrest Cannon, Inc. ST: North Carolina IN: TEX SU: ERN

GK-AO -- NY071 -- 2529 02/03/93 15:26 EST
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Date:Feb 3, 1993

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